S&P keeps SOCAR’s ratings unchanged
Standard & Poor’s Global Ratings has kept corporate credit rating, outlook, and issue ratings of the SOCAR unchanged (BB/Negative/--), APA-Economics reports.
The announcement of International Bank of Azerbaijan (IBA) to restructure its debt has not affected the ratings of the SOCAR.
“Our rating on SOCAR remains underpinned by our assessment of an extremely high likelihood of extraordinary support from the government of Azerbaijan. We base our assessment on SOCAR’s critical importance to the hydrocarbon-focused country -- particularly with the large Shah Deniz-2 project, where SOCAR plays a central role, coming on stream next year. Also, we believe that the government is heavily involved in SOCAR's strategy and monitors its debt. However, we acknowledge that the company manages its day-to-day operations autonomously, and there are no state guarantees on the company’s debt,” said the S&P message.